A growing number of landlords in the U.S. are open to negotiating on asking prices, reflecting the fact that it is currently a renters market across many parts of the country, particularly in areas where there is currently a glut of homes available to let.
In San Francisco, where average rents have soared in recent years, landlords slashed the asking price on 21% of listings in the 12 months that ended September 30, up from 14% of listings that were cut last year, according to a new report published by Trulia.
In more than 40 cities across the country, landlords cut prices on at least 10% of listings, the report said.
But while rent growth has slowed in the last year, rents are still rising in some markets.
Mark Uh, a data specialist at Trulia, a major property portal, said that there are two main reasons for the rent reductions.
In the most expensive U.S. markets, landlords may have exceeded what renters will pay and are beginning to adopt more realistic expectations.
In cities where rents are cheaper, many landlords are being left with little alternative but to cut rents to make their asking prices more competitive with the supply of new homes flowing into the market.
While it is not uncommon to see rents fall – and rise – it is important that anybody planning to invest in the U.S. housing market understand what existing market conditions are like.
“Landlords have been listing units too high,” said Uh. “When they reduce the price, they’re finding people who are eager to rent.”